A SEASIDE town known for playing host to US First Lady Michelle Obama aims to encourage people to shop locally as it becomes the country's first SmartNet hub.

Customers can collect points, dubbed LolliPoints, when they use a loyalty card or smartphone app to shop in more than 20 retailers throughout Dalkey, Co Dublin.

The bid to boost the number of people supporting shops in their own area through a 'SmartNetTown' came from Dublin-based start-up Value Nation. Nicky Logue, chair of the Dalkey Business Group, said it would help businesses "enjoy greater loyalty".

During a three-month trial in the town, €653,000 was spent using the Value Nation app. Customers then receive reward points that they can redeem in participating shops and restaurants.

Tanaiste Eamon Gilmore said entrepreneurial moves such as this helped "breathe life back" into towns.

Eamonn Dawson, one of the co-founders of Value Nation, said it helped retailers engage with their customers.